Court grants time extension for fees, stays tax assessment order, upholds fair hearing rights in faceless proceedings.

The court granted an extension of time for depositing court fees and filing affidavits, subject to exceptions. In a challenge against an assessment order under the Income Tax Act, the court stayed the operation of the order, notice of demand, and penalty proceedings. It favored the petitioner's argument regarding the denial of a personal hearing in faceless assessment proceedings due to the absence of established procedures, emphasizing the importance of fair hearing rights. The judgment ensured a just resolution based on principles of natural justice and statutory provisions.

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Issues Involved:
1. Extension of time for deposit of court fees and filing affidavits.
2. Validity of assessment order under Income Tax Act, 1961.
3. Right to personal hearing in faceless assessment proceedings.

Issue 1: Extension of time for deposit of court fees and filing affidavits
In CM No.16833/2021, the petitioner sought an extension of time to deposit court fees and file affidavits. The court granted the request, directing the petitioner to complete these actions within three days of the court's return to normal work patterns. This issue was resolved with the court allowing the extension, subject to exceptions.

Issue 2: Validity of assessment order under Income Tax Act, 1961
In W.P.(C) No.5427/2021, the petitioner challenged an assessment order issued under Section 143(3) read with Section 144B of the Income Tax Act, 1961. The petitioner alleged a breach of natural justice principles in the assessment order for the assessment year 2018-2019. The petitioner also contested subsequent notices of demand and penalty proceedings issued on the same date as the assessment order. The petitioner claimed to have responded to a show cause notice and requested a personal hearing, which was not granted before the assessment order was passed. The respondent argued that the petitioner did not have an absolute right to a personal hearing, citing relevant provisions under Section 144B(7)(vii) and (viii) of the Act. The court noted the discretion of the officer in charge of the Regional Faceless Assessment Centre and the requirement for standard procedures and processes to be framed by the National Faceless Assessment Centre. As the respondent could not confirm the existence of these procedures, the court inclined to agree with the petitioner's contentions. The court issued notice to the respondent, accepted service on their behalf, and stayed the operation of the assessment order, notice of demand, and penalty proceedings until the next hearing date.

Issue 3: Right to personal hearing in faceless assessment proceedings
The issue of the petitioner's right to a personal hearing in faceless assessment proceedings was central to the challenge against the assessment order. The court analyzed the provisions of Section 144B(7)(viii) of the Act, emphasizing the officer's obligation to grant a personal hearing upon request, subject to specific circumstances outlined in the Act. The court highlighted the importance of standard procedures and processes to be established by the National Faceless Assessment Centre for granting personal hearings. Due to the lack of confirmation regarding these procedures, the court favored the petitioner's argument regarding the denial of a personal hearing. The court's decision to issue notice, accept service, and stay the operation of the assessment order reflected the significance of the right to a fair hearing in assessment proceedings.

Overall, the judgment addressed the issues of time extension for court fees, validity of the assessment order under the Income Tax Act, and the right to a personal hearing in faceless assessment proceedings, ensuring a fair and just resolution based on principles of natural justice and statutory provisions.

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